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No confirmation by either Fiat or Chrysler, as might be expected. (http://www.google.com/hostednews/ap/article/ALeqM5jInXYL1g1fSrVp6MG6tMg-_Z3B8wD95QE6O00) UPDATE: YES (http://www.msnbc.msn.com/id/28747620/)

http://www.cleanmpg.com/photos/data/501/Chrysler_s_Bob_Nardelli.jpgAP - Jan 19, 2009

Not much overlap - just like with Daimler. They better hope this marriage will work. -- Ed.

Auburn Hills, Mich - Fiat SpA is holding discussions with Chrysler LLC about taking a stake in the U.S. car maker and creating a partnership that would allow the Italian auto maker to build and sell its small cars in the United States, two publications reported Monday.

Unnamed officials familiar with the discussions told The Wall Street Journal and Automotive News that Chrysler would have access to the Turin-based automaker's engine and transmission technology as part of a potential deal.

Chrysler spokeswoman Lori McTavish said in a statement Monday that "in today's economic environment, talks are going on between companies in all industries — ours is no different." McTavish said Chrysler as a policy "does not confirm or disclose the nature of its private business meetings."....http://www.google.com/hostednews/ap/article/ALeqM5jInXYL1g1fSrVp6MG6tMg-_Z3B8wD95QE6O00

Fiat and Chrysler have signed a nonbinding agreement for a strategic alliance that would give the Italian auto empire a 35-percent stake in the troubled U.S. carmaker.

The two companies said in a joint statement Tuesday they would share technologies and vehicle (http://www.msnbc.msn.com/id/28747620/#) platforms. Under the proposed alliance, Fiat would not invest cash in Chrysler but would provide access to its products and platforms.

On Monday, The Wall Street Journal reported that a pact between the two companies would be aimed at helping them weather an economic downturn threatening the survival of some of the auto industry’s biggest companies.

Ok, I am laughing at this mental image of a Fiat 500 next to a 3/4 ton Ram MegaCab in a showroom. It's like that old optical illusion where two vehicles appear side by side with one seeming to be ten times larger but that's only because the larger one is actually closer to you...
I think the Fiat would even fit in the bed of the truck.
The Fiat 500 is a big seller in Europe, and an Americanized version could certainly get here just in time for coming tripling of gas prices. Who knows - we may see the day when they offer "Buy a Fiat 500, get a free Ram pickup".

Fiat and Chrysler have signed a nonbinding agreement for a strategic alliance that would give the Italian auto empire a 35-percent stake in the troubled U.S. carmaker.

The two companies said in a joint statement Tuesday they would share technologies and vehicle (http://www.msnbc.msn.com/id/28747620/#) platforms. Under the proposed alliance, Fiat would not invest cash in Chrysler but would provide access to its products and platforms.

On Monday, The Wall Street Journal reported that a pact between the two companies would be aimed at helping them weather an economic downturn threatening the survival of some of the auto industry’s biggest companies.

Great mental image! It would be wonderful to have the Fiat 500 and 600 available here. Might be good competition for the Smart car, and it does have retro going for it like the Mini and new Beetle. Wonder if it has been structurally engineered as well as the Smart for crashworthiness???

Could be interesting to have the Multipla sold here too.

Only if they make the Multipla less ugly! I've never seen a more hideous car. It's too bad, because the layout is exceedingly practical.

As far as i am concerned, this is great news. Chrysler screwed up big time(actually Daimler did) by NOT selling smart through the estalished dealer network here. Management decided to build Hemi Commanders instead of bringing in the smart, so Chrysler had no subcompact to sell. Having the 500 and other choices to sell would be a real plus! Not sure if my wife would want to give up the smart for a 500, but i know she likes them.

This is brilliant, however i think that when americans realize that they can have 4X4 in a Panda the trucks might not sell (so cool and the name makes it sound like you are saving the rainforest for some reason)
i just hope that they dont harm fiat´s beautiful lineup (italians are really good at asthetics) with hideous crysler dodge styling cues (except for the challenger which is awesome looking)
and im pretty sure the 500 is way closer to a mini than a smart
it would be so awesome to see some part of fiat in the US

Chrysler's foreign partners have always suffered from the bargain. Does anyone remember Simca's partnership with Chrysler?

A Fiat/Chrysler partnership would allow Fiat to try again in the USA. I hope its reliability has improved immensely since its previous effort. I rented a Fiat Uno in Israel about a dozen years ago, and put 1000 km on it.

Chrysler's foreign partners have always suffered from the bargain. Does anyone remember Simca's partnership with Chrysler?

A Fiat/Chrysler partnership would allow Fiat to try again in the USA. I hope its reliability has improved immensely since its previous effort. I rented a Fiat Uno in Israel about a dozen years ago, and put 1000 km on it.

Other Chrysler foreign partners included Mitsubishi (Japan) and also Rootes Group (England), where the Hillman Avenger was sold here for a couple of years in the early 70s as the Plymouth Cricket.

We can hope that a Fiat partnership will end up closer to the Mitsu relationship than those of Rootes or Simca. If it weren't for the Mitsu 3.0 V6, Chrysler would have had nothing more than the 2.2 and 2.5 engines until the early 90s when their 3.3 and 3.8 hit the market.

Re: Fiat reliability. The last taste of Fiat in the US was in the '70s, when ALL manufacturers had quality problems. The Fiat Strada was the last model offered, not counting the 2 seat convertible. The Strada was a crummy car, but wasn't really any worse than the competing Renault LeCar, original VW Rabbit/Dasher, Datsun B210 and F10, and early Mazda GLC. The Honda Civic and Toyota Tercel at that time were comparatively bulletproof but anemic and nothing like the Civic/Yaris of today.
Fiats had their rust issues, but Chrysler was right there with them with the Aspen/Volare, GM with their Vega and related clones and also A-body intermediates, and most Fords of the era suffered from early rust. Even Honda/Nissan/Toyota/Mazda vehicles of that time were rotting away in a few years.
Mechanical and electrical problems were also common in most makes/models in those days. Today's cars and trucks are nothing like what we had 30 years ago, so Fiat should be judged by their competitive rankings among its peers on European roads. If they're holding up in Europe, they have a fighting chance in the US.

This is good news indeed. Ive been waiting on Fiats return. Now if Mopar does not ruin there US offerings.

I grew up in Fiats. Learned to drive on a 1967 850 Coupe. We also had a 1969 124 Sports Coupe. Aunt had a 1970 124 Spider. Racing friends of my fathers had 850's, 500's. One of his buddys had a full Abarth 500 and a 850 Coupe with a 124 engine in the rear. Many of the cars were Hill Climbed, Auto Crossed, Rallied weekly and did daily driver time. Father also had a 128 Coupe for a few years.

My brother has a X1/9. Its his part time daily driver. Full time Auto-X ride. He has been working on it for a few years now. Racing it from day one. :) While its not in perfect shape, and never will be. It's a blast to drive. Only car that has ever made me car sick on a Auto-X track.:o

http://www.cleanmpg.com/photos/data/617/fiat_010.jpg
http://www.cleanmpg.com/photos/data/617/fiat_014.jpg
http://www.cleanmpg.com/photos/data/617/fiat_016.jpg
http://www.cleanmpg.com/photos/data/617/fiat_018.jpg

that is a beautiful car, wonderful looking, although i think maybe it would be better without the yellow badges, very nice, very nice